Tony Griffin's Promise to Pay for Silver Line Cost Overruns
A friend of mine recently shared a letter with me -- one that I heard about, but had not seen. The letter was written last year (November 1, 2005) by Fairfax County Executive Tony Griffin. It was sent to Virginia's Secretary of Transportation, Pierce Homer. The letter, copy displayed below, discusses the County's commitment to the extension of Metrorail through Tysons Corner and to Dulles and beyond.
Griffin's letter then discusses cost overruns and, without authorization from our elected supervisors, commits Fairfax County taxpayers to fund the County's "share" of cost overruns. How? Using a "pay-as-you-go" plan using General Fund revenues, which, of course, come chiefly from real estate taxes that are paid by all of us. And we thought the days of double-digit real estate tax increases were over! Alternatively, Griffin's suggests that the County would seek approval to issue bonds and go into debt to pay for cost overruns.
Of course, as a non-elected employee of the County, Tony Griffin can no more commit Fairfax County taxpayers to pay for cost overruns than could a clerk in a county office. But was Tony Griffin instructed or, at least, encouraged by one or more supervisors to send a signal to the State and the Tysons Corner landowners that the supervisors would do all in their power to make ordinary citizens pay for the inevitable cost overruns? If the supervisors were not supportive of this "commitment" of taxpayer money, why didn't they officially countermand Griffin?
Why discuss a letter that's almost one year old? The letter is material because we are soon likely to learn from the Federal Transit Administration (FTA) whether there will be federal funding for the Silver Line. The FTA could quickly decide whether the current proposal passes the cost/benefit test. If federal funding is available, the project will go forward.
But that's not the end of the financial issues. Few, if any, large construction projects do not experience cost overruns. The Silver Line will certainly cost more than $4 billion to build. Who will pay for these extra costs? Not the federal government. Its share is limited to $900 million. Unless there's a change in the special tax district, not the Tysons and Dulles Corridor landowners. Their commitment is limited to $400 million for Phase I.
Who is left? Certainly not the Virginia treasury. Northern Virginia gets very little from the State. Toll Road drivers. Probably, but just how high could tolls be raised before we have a revolt -- especially since the Toll Road would not receive the benefits from rate hikes? That leaves the residents of Fairfax County in the bulls-eye. Absent some legislative protections, there is a significant risk that real estate taxes paid by the county's residents will be increased to pay for Silver Line cost overruns. That's why Tony Griffin's letter is still very important today. His letter suggest that this fear will likely come true. We are likely to see our property taxes increase to build a rail line that does not reduce traffic congestion, but only enriches a select group of landowners. This is wrong.
We need Gerry Connolly to address this issue. We also probably need legislation to prohibit Fairfax County from recovering any Silver Line capital expenses in real estate taxes.
Griffin's letter then discusses cost overruns and, without authorization from our elected supervisors, commits Fairfax County taxpayers to fund the County's "share" of cost overruns. How? Using a "pay-as-you-go" plan using General Fund revenues, which, of course, come chiefly from real estate taxes that are paid by all of us. And we thought the days of double-digit real estate tax increases were over! Alternatively, Griffin's suggests that the County would seek approval to issue bonds and go into debt to pay for cost overruns.
Of course, as a non-elected employee of the County, Tony Griffin can no more commit Fairfax County taxpayers to pay for cost overruns than could a clerk in a county office. But was Tony Griffin instructed or, at least, encouraged by one or more supervisors to send a signal to the State and the Tysons Corner landowners that the supervisors would do all in their power to make ordinary citizens pay for the inevitable cost overruns? If the supervisors were not supportive of this "commitment" of taxpayer money, why didn't they officially countermand Griffin?
Why discuss a letter that's almost one year old? The letter is material because we are soon likely to learn from the Federal Transit Administration (FTA) whether there will be federal funding for the Silver Line. The FTA could quickly decide whether the current proposal passes the cost/benefit test. If federal funding is available, the project will go forward.
But that's not the end of the financial issues. Few, if any, large construction projects do not experience cost overruns. The Silver Line will certainly cost more than $4 billion to build. Who will pay for these extra costs? Not the federal government. Its share is limited to $900 million. Unless there's a change in the special tax district, not the Tysons and Dulles Corridor landowners. Their commitment is limited to $400 million for Phase I.
Who is left? Certainly not the Virginia treasury. Northern Virginia gets very little from the State. Toll Road drivers. Probably, but just how high could tolls be raised before we have a revolt -- especially since the Toll Road would not receive the benefits from rate hikes? That leaves the residents of Fairfax County in the bulls-eye. Absent some legislative protections, there is a significant risk that real estate taxes paid by the county's residents will be increased to pay for Silver Line cost overruns. That's why Tony Griffin's letter is still very important today. His letter suggest that this fear will likely come true. We are likely to see our property taxes increase to build a rail line that does not reduce traffic congestion, but only enriches a select group of landowners. This is wrong.
We need Gerry Connolly to address this issue. We also probably need legislation to prohibit Fairfax County from recovering any Silver Line capital expenses in real estate taxes.
posted by Toomanytaxes at 3:10 PM
2 Comments:
Thank you for posting this!
Even if it's not binding and comes as no surprise, it underscores that a county official would "commit" to fund the county's undefined "share" of cost
over-runs - with no indications of any limit - through general revenue or debt (bonds).
It may not be legally binding, but it serves to document and solidify
the growing conceerns that the powers that be are willing to write a blank check on the backs of ordinary families to fund this - no matter what the cost to workers, commuters, and schoolchildren.
A great editorial is at http://www.timescommunity.com/site/tab5.cfm?newsid=17192676&BRD=2553&PAG=461&dept_id=565197&rfi=6
It states in part:
"It is clear that both [elevated rail] and the tunnel should be discarded. The commonwealth and Fairfax County have wasted more than 10 years and have nothing to show for it. Meanwhile, our average commute time has increased, ranking second only to New York City, and the existing Metrorail system is becoming plain intolerable. We need fresh thinking.
"Thus, Plan C starts with an alternatives analysis that actually looks at alternatives. Plan C then selects the option that can best reduce congestion, support transit-oriented development, complement existing transit services, and attract people out of their cars, all in a cost-effective manner. I think bus rapid transit (BRT) is the right way to go, but other options should be on the table as well..."
There is some common sense somewhere in this county.
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